Reference no: EM133176590

You are contacted by Ravino  by telephone  at 1:05 PM, and he related the following information as paraphrased below:

On the morning of 06-30-2012 he was contacted by an employee, Kahindi Nyiro, who stated that she had not received her profit-sharing cheque which should have been issued on May 22, 2012. Ravino stated that she had moved to another residence on 05-15-2012 and forgot to notify the Personnel Department of her new address.  Ravino believed that the check may have been sent to her prior address.

Ravino contacted CONSUMER Ltd. personnel department, and was advised that the profit-sharing check had been issued on 05-22-99, and mailed to Kahindi Nyiro  address of record: 82- 80402, L/Lunga.

Ravino  then contacted payment department, and was advised that check number 17887 drawn on its account at Uwezo Bank in the amount of Kshs 14,712,190 and made payable to Kahindi Nyiro , had been successfully cleared on 05-26-99 and appeared in the monthly bank statement.

You preliminary suspicion is that the cheque was fraudulently endorsed, by post office collusion with bank official. 

Required:

1. By identifying your evidence as exhibit 1, exhibit 2 .... n what are  the various documentary, physical, circumstantial or oral (interview) evidence that you will target to build up you case for the forged cheque.
2. What are the various lapses in the system of accounting and internal control that may have caused the forgery.
3. What is the example of  a concise report to the finance officer, giving an explanation, that can be prepared in relation to:
   1. Scope of the engagement
   2. Investigation procedures followed
   3. Major finding (hypothetical based on evidence in (a) above)
   4. Recommendation on improving the internal control and payment systems.